quarterly report 3/2006...–10 –5 0 5 10 15 20 25 30 35 40 sales ebitda earnings q3 2005 q4 2005...
TRANSCRIPT
QUARTERLY REPORT 3/2006
1OVERVIEW OF GROUP RESULTS
*With regard to the second and third quarter of 2006, EBITDA and EBIT have been adjusted to include the positive one-off special items resulting from the
settlement with the Cogent Communications Group, Inc. amounting to ¤ 4.74 million and fund yields amounting to ¤ 2.20 million.
With regard to the first nine months and the third quarter of 2005, one-off effects resulting from the spin-off of Carrier24 GmbH amounting to ¤ 5.02 million
have been eliminated.
3U Group (IFRS) 9-month comparison 1 Jan–30 Sep 1 Jan–30 Sep
2006 2005
Sales (in ¤ million) 97.21* 89.13*
EBITDA (earnings before interest, taxes, depreciation and amortisation) (in ¤ million) 7.06* 4.71*
EBIT (earnings before interest and taxes) (in ¤ million) –6.21* –6.37*
EBT (earnings before taxes) (in ¤ million) –1.11* 5.17*
Net income/loss for the period (in ¤ million) –1.19* 4.17*
Earnings per share (undiluted) (in ¤) –0.03* 0.09*
Earnings per share (diluted) (in ¤) –0.02* 0.09*
Equity ratio (in %) 38.07* 36.87*
3U Group (IFRS) Quarterly comparison Q3 2006 Q3 2005
Sales (in ¤ million) 32.13* 31.12*
EBITDA (earnings before interest, taxes, depreciation and amortisation) (in ¤ million) 1.92* 2.25*
EBIT (earnings before interest and taxes) (in ¤ million) –1.68* 0.26*
EBT (earnings before taxes) (in ¤ million) –0.15* 14.85*
Net income/loss for the period (in ¤ million) –0.10* 14.40*
Earnings per share (undiluted) (in ¤) 0.00* 0.31*
Earnings per share (diluted) (in ¤) 0.00* 0.30*
Equity ratio (in %) 38.07* 36.87*
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Letter to our shareholders
3U shares
Report on business development
Significant events since the end of the interim reporting period
Outlook
Consolidated balance sheet as of 30 September 2006 (IFRS)
Consolidated income statement (IFRS)
Cash flow statement (IFRS)
Statement of changes in equity (IFRS)
Notes to the consolidated financial statements as of 30 September 2006 in accordance with IFRS
Financial calendar
Contact
Imprint
Disclaimer
3U Group
CONTENT 3
4
Dear Shareholders,
The third quarter of the financial year 2006 was also characterised by strategic realignment. 3U TELECOM AG
still finds itself in an extremely challenging market environment. Aggressive competition, diminishing
margins and a fierce price war necessitate a continual adaptation to changing market conditions through
appropriate restructuring measures. Repositioning in the fixed-line telephony segment, which shifted focus
to the call-by-call and wholesale businesses, is already showing the first signs of success after being
decided upon and introduced in the previous quarter. Measures aimed at streamlining structure costs have
been implemented throughout the Group.
On a Group level, there was an increase in key figures regarding sales and EBITDA (consolidated) compared
with the previous year. Sales rose by ¤ 8.08 million to ¤ 97.21 million (previous year: ¤ 89.13 million).
In the third quarter, sales of ¤ 32.13 million were generated, which was slightly down on the previous quarter
(Q2 2006: ¤ 32.92 million).
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to
¤ 7.06 million, which was an increase of almost 50 % compared with the previous year (¤ 4.71 million).
On a Group level, the discontinuation of non-profitable business activities (domestic and overseas) in which
key figures are in slight decline can, to a great extent, be off-set by focussing on profitable sales revenues.
The results in the third quarter confirm that, on the whole, we implemented the right measures at the right
time.
In the future, we will continue to make every effort to maintain our ground in the challenging competitive
environment.
Fixed-line telephony: repositioning takes effect
On a Group level, in the first nine months of 2006 our expectations have been fulfilled. EBITDA is positive at
¤ 0.56 million (previous year: ¤ –1.98 million).
Despite the discontinuation of non-profitable business activities, sales in the fixed-line segment were up
13.7 % on the previous year at ¤ 70.09 million (previous year: ¤ 61.66 million). Compared with the previous
quarter, there was slight decrease of 2.81 % down to ¤ 23.19 million (Q2 2006: ¤ 23.86 million).
In spite of the continuing price war, we were able to perform well in the call-by-call and wholesale areas. This
positive development in a very challenging market environment reinforces our intention to put further focus
on this core business.
LETTER TO OUR SHAREHOLDERS
5
The Group-wide technology platform for preselection, DSL and VoIP products is also being expanded, which
will serve to strengthen our position as a service partner for third parties.
As a result of the structural realignments that have been carried out, such as the phasing-out of indirect
sales and the operative closure or pending sale of individual foreign subsidiaries, we anticipate a further
decrease in sales next year, although profitability will remain stable.
Carrier selection codes successful in the market
The placement of our new carrier selection code 010017 in the call-by-call market continued to generate
positive sales in the third quarter. From November 2006, we intend to gain additional market share by
introducing further carrier selection codes.
Factors for success are cost-efficient marketing via tariff tables, effective tariff management and media
cooperation (fon4U), as well as improvements in profitability through routing optimisation.
Sales development at LambdaNet still below expectations
EBITDA in the broadband/IP segment remained stable in the first nine months at ¤ 6.50 million (previous
year: ¤ 5.61 million) with an EBITDA margin of almost 24 %. On the whole, due to special items in the area of
personnel (reserves for indemnity payments) EBITDA is lower in the third quarter of 2006 at ¤ 1.77 million
(previous year: ¤ 2.18 million).
Sales in the first nine months of 2006 were ¤ 27.11 million, which was higher than the previous year’s figure
(¤ 25.90 million), yet still below plan due to the initially slow development of the Corporate Sales activities.
Following the termination of a contract from one of our major customers in the Carrier Sales division, the
quantity of orders was predictably lower. The termination of the contract will take effect from the year 2007
and the changes have already been taken into consideration in the medium-term planning. The further
expansion of the Corporate Sales activities and the ensuing development in sales and profits present both
challenges and opportunities.
Operative restructuring as a basis for sustainable profitability
In order to ensure the long-term stability and profitability of the 3U Group, the Management Board will
continue its operative restructuring, which has already made significant progress in the last two years.
6
Due to the downturn in the market environment caused by the continuous price war in the fixed-line telephony
and broadband/IP segments, we anticipate that sales figures for 2006 will fall slightly short of their target,
though profit targets will be met.
The share price remains below our expectations. Thus, we will use the analyst conference in the fourth
quarter as a platform to present the structure and aim of our repositioning, and to promote our shares.
Marburg, in November 2006
Der Vorstand
Michael Schmidt Roland Thieme Oliver Zimmermann
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*Daily closing price Xetra
3U SHARES
Investor Relations
The aim and intent of our investor relations activities is to provide the capital market and interested
members of the general public with prompt, comprehensive and transparent information about the company.
Overview of 3U shares
International Securities Identification Number (ISIN) DE0005167902
Wertpapierkennnummer (WKN) [German securities identification number] 516790
Stock exchange symbol uuu
Trading segment Prime Standard
Industry key Telecommunications
Designated Sponsors AXG Investmentbank AG Helaba Landesbank Hessen-Thüringen
Initial listing 26 November 1999
Registered share capital ¤ 46,842,240.00
Share price on 29 September 2006* ¤ 0.64
Share price high until the end of Q3 2006* ¤ 0.96 ¤ (13 and 14 March 2006)
Share price low until the end of Q3 2006* ¤ 0.63 (13 June and 12 September 2006)
Number of shares 46,842,240
Market capitalisation on 30 September 2006 ¤ 29,979,033.60
Earnings per share (undiluted) ¤ –0.03
Source: ReutersTechnology All Share Index %3U TELECOM %
January February March April May June July August September
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80
90
100
110
120
130
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Share price
Share price development is below our expectations. In the future, the milestones achieved through
restructuring the Group, as well as the appropriate measures towards repositioning should also be reflected
in the share price.
The following chart shows the share price performance (indexed) of 3U shares compared with the
Technology All Share Index.
*Daily closing price Xetra
9
Analyst opinions on 3U shares
During the third quarter, analysts gave the following recommendations for 3U shares:
Recommendation Date Source
Hold 21 August 2006 Helaba Trust
Hold 16 August 2006 Helaba Trust
Buy 9 August 2006 Helaba Trust
Hold 5 July 2006 SES Research
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Berth Hausmann 0.05 %
Michael Schmidt 17.72 %
Gerd Simon 0.02 %
Free Float 76.86 %
Roland Thieme 5.35 %
Shareholder structure
As of 30 September 2006, governing bodies held the following shares with full voting and dividend rights:
Management Board
Berth Hausmann (CFO until 30 September 2006) 22,000 shares
Michael Schmidt (CTO) 8,299,995 shares
Roland Thieme (CIO) 2,508,330 shares
Total Management Board 10,830,325 shares
Supervisory Board
Hubertus Kestler (Chairman) 0 shares
Ralf Thoenes (Deputy Chairman) 0 shares
Gerd Simon 10,000 shares
Total Supervisory Board 10,000 shares
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EarningsEBITDASales
Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006
–4.06
14.40
–1.93
0.84
–0.10
2.092.25 2.78 2.35 1.92
34.25
31.1232.15 32.92 32.13
Earnings situation
Group
In the first nine months of the financial year 2006, sales increased by ¤ 8.08 million to ¤ 97.21 million
(previous year: ¤ 89.13 million) and profitability remained stable. A slight decrease in sales and profits could
be observed when compared with the previous quarter (Q2 2006). The main reasons for this were the
aggressive competitive environment, the discontinuation of indirect sales in the fixed-line segment and the
weaker than expected development of the Corporate Sales activities at LambdaNet.
For the first nine months, consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA)
were ¤ 7.06 million (previous year: ¤ 4.71 million). EBITDA in Q3 was ¤ 1.92 million (Q2 2006: ¤ 2.35 million).
Development (sales, EBITDA, earnings) — 3U Group in ¤ million
Fixed-line segment
In the first nine months of the financial year 2006, the 3U Group’s activities in the fixed-line segment recorded
sales of ¤ 70.09 million, which was an increase of 13.7 % compared with the previous year (¤ 61.66 million).
A comparison with the previous quarter (Q2 2006: ¤ 23.86 million) showed a slight decrease in the third
REPORT ON BUSINESS DEVELOPMENT
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EarningsEBITDASales
Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006
–0.46–1.60
–0.36 –0.41
2.25
0.09
–0.61
0.38 0.02 0.15
25.11
22.3323.04
23.8623.19
quarter to ¤ 23.19 million. In the first nine months, EBITDA is positive at ¤ 0.56 million. This demonstrates
an improvement in profits compared with both Q3 2005 (¤ –0.61 million) and the previous quarter (Q2 2006:
¤ 0.02 million).
Since the beginning of the financial year, the fixed-line segment has been consistently profitable in its
operating business activities, which is attributable to the continued optimisation and restructuring of
operative units.
The 010017 Telecom GmbH was a new performer. In the first months of operation, the new carrier selection
code fulfilled sales expectations. With the introduction of the Discount Telecom S&V GmbH in November 2006,
a further step will be taken towards positioning ourselves in this challenging market environment.
Following the on-going efficiency check, non-profitable subsidiaries such as those in Switzerland and
Belgium will be closed or sold. In both countries, operative business has already been discontinued.
As a result of one-off special items, net income for the first nine months of the current financial year is
¤ 1.48 million. The reasons for this are the improvements in both operative profitability and capital gains
within the scope of the restructuring of our fund assets resulting in profit contributions of ¤ 2.20 million.
Development (sales, EBITDA, earnings) — fixed-line telephony segment in ¤ million
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EarningsEBITDASales
Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006
–2.08
10.97
–1.58
1.25
–2.35
2.002.86
2.40 2.331.77
9.138.79 9.11 9.06 8.94
Broadband/IP segment
In the first nine months of 2006, sales were ¤ 27.11 million (previous year: ¤ 25.90 million excluding Carrier24).
In the ever challenging market environment, sales of ¤ 8.94 million in Q3 2006 remained stable compared
with the same period in the previous year (¤ 8.79 million) and the previous quarter (Q2 2006: ¤ 9.06 million).
At ¤ 6.50 million, EBITDA in the first nine months is above the previous year (¤ 5.61 million excluding Carrier24).
In Q3 2006 EBITDA was ¤ 1.77 million (previous year: ¤ 2.18 million excluding Carrier24). A decrease could be
also seen in comparison with the previous quarter (Q2 2006: ¤ 2.33 million). Restructuring costs as a result
of staff reductions in the technology and finance divisions represent a significant cost. Taking the whole
year into consideration, EBITDA targets can be maintained.
Despite terminations of contracts and price adjustments, the Carrier Sales activities have thus far been
able to stabilise sales. However, due to the termination of contract that we have already received from one
of our major customers, from 2007 we expect a significant decline in sales. In the area of Corporate Sales
(Virtual Private Network), sales fall short of expectations. Expansion of the VPN business continues to
represent one of the main tasks in order to generate the necessary compensation for the decline in sales in
the Carrier Sales area.
As of 30 September 2006, the annual deficit was ¤ 2.68 million.
Development (sales, EBITDA, earnings) — broadband/IP segment in ¤ million
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Financial situation
The balance sheet ratios are stable. As a result of one-off special items such as the agreement with Cogent
in Q2 2006 and the capital gains from fund investments in Q3, as of 30 September 2006 the equity ratio had
increased by 38.07 % compared with 31 December 2005 (35.87 %).
In order to increase the Group’s profitability and competitiveness, investments totalling ¤ 1.83 million were
made in the first three quarters of 2006.
Fixed assets amount to ¤ 75.70 million (previous year: ¤ 88.72 million). This accounts for 66.16 % (previous
year: 69.44 %) of the balance sheet total.
Despite the commenced repayment of a bank loan of ¤ 2.61 million, the company’s liquidity (including cash
and cash equivalents) amounted to ¤ 41.67 million, which demonstrated a slight increase compared with the
previous year (previous year: ¤ 40.18 million). On the whole, liquidity will decrease towards the end of the
year due to the balloon repayment on the convertible stock at LambdaNet (¤ 4.2 million).
In the first nine months of 2006, the Group’s operating cash flow was significantly positive and in line with
our expectations at ¤ 5.72 million. This was primarily due to payment from one of LambdaNet’s major
customers. We expect a positive operating cash flow throughout 2006.
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Broadband/IP segment (91)Fixed-line segment (83)
Sales/Marketing Finance/AdministrationOperations/ITTechnology/System Development
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31
21
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Employees
Due to the discontinuation of indirect sales in August 2006 and the corresponding reduction of 40 jobs, the
number of employees in the fixed-line segment has declined considerably compared with 31 December 2005.
Within the framework of an examination of the whole structure of the company, there was a reduction of
seven employees in the broadband/IP segment.
Employee structure in the first nine months of 2006*
*Employees including temporary staff based on full-time equivalents (weighted quarterly figures).
16 SIGNIFICANT EVENTS SINCE THE END OF THE INTERIM REPORTING PERIOD
Oliver Zimmermann is new CFO
With effect from 1 October 2006, Dipl.-Kfm.* Oliver Zimmermann (36) was appointed Chief Financial Officer.
Oliver Zimmermann has many years of experience as a Senior Advisor at Roland Berger Strategy Consultants
in the areas of restructuring and corporate finance. His responsibilities within our company will primarily lie
in the areas finance, administration and personnel. At the same time, Berth Hausmann withdrew from his
role as a Member of the Management Board on 30 September 2006.
*Master’s degree in business administration
17OUTLOOK
In an extremely challenging market environment, our company continues to stay on track. In the future, our
main task will continue to be an on-going adaptation of the company in accordance with changing market
conditions. In the interest of our shareholders, we will endeavour to confront the sustained price war by
continually optimising our business processes and constantly balancing opportunities and risks.
In light of the heightened competition and price reductions, business performance in Q3 2006 corresponds
with market trends in the telecommunications sector, yet on the whole is below the Management Board’s
expectations.
The Management Board is confident that the structural and operative measures which have been
implemented will ensure that profit targets for the financial year (EBITDA ¤ 8.5 million) will be met. However,
the Group sales figures announced for the year 2006 will be slightly below target at an anticipated
¤ 130 million.
Strengthening our position in the fixed-line segment
By building on our restructuring success in the call-by-call and wholesale areas, we were able to attain
sustained operative profitability. Additional market share could also be gained through consistent tariff
management. We will maintain our position in the highly competitive market environment by continuing with
our strategy of activating further carrier selection codes.
Broadband/IP: LambdaNet well positioned against fierce predatory competition
In the Carrier Sales division (LambdaNet’s core business thus far) we continue to be confronted with a
saturated market and a continuing fall in prices. However, the expansion of the Corporate Sales activities as
an additional core business ensures that we will face this with very good growth opportunities. We are
confident that we will be able to stabilise and expand on sales and profits in the medium-term as an
integrated VPN provider.
Restructuring success as a basis for repositioning
The persistent restructuring drive in the fixed-line and broadband/IP segments provides a basis for the
sustained operative profitability of our core businesses.
Profit developments in the first nine months of the current financial year confirmed that the right measures
were implemented at the right time. However, the Management expects that the telecommunications market
will continue to present an increasingly challenging environment in which our medium-term growth and
18
profit potential are limited. Thus, despite the expected decline in sales in the fixed-line segment, the aim is
to stabilise the Group’s operative profitability in the coming financial year and to seize the strategic options
provided in the medium-term. The company’s liquidity including cash and cash equivalents serves to
strengthen the Group’s options.
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20 CONSOLIDATED BALANCE SHEET AS OF 30 SEPTEMBER 2006(IFRS)
*This includes CityDial GmbH (associated company) with ¤ 104 thousand (previous year: ¤ 90 thousand).
Assets 30 September 31 December3U Group (in ¤ thousand) 2006 2005
Non-current assets 75,699 88,723
Intangible assets 8,920 13,112
Property, plant and equipment 39,658 47,248
Financial assets* 24,245 24,996
Deferred taxes 43 99
Other non-current assets 377 736
Prepaid expenses 2,456 2,532
Current assets 38,712 39,031
Trade receivables 16,035 16,813
Other current assets 1,034 3,428
Cash and cash equivalents 17,528 15,278
Prepaid expenses 4,115 3,512
Total assets 114,411 127,754
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Shareholders’ equity and liabilities 30 September 31 December3U Group (in ¤ thousand) 2006 2005
Shareholders’ equity 43,550 45,821
Issued capital 46,842 46,842
Capital reserve 21,260 20,901
Revaluation reserve 577 2,213
Retained earnings –23,931 –24,210
Net income/loss –1,188 77
Minority interests 0 9
Adjustment item for currency difference –10 –11
Non-current provisions and liabilities 28,812 37,096
Non-current provisions 116 4,647
Non-current liabilities due to banks 11,171 13,781
Non-current lease liabilities 17,300 17,523
Other non-current liabilities 8 53
Deferred taxes 0 600
Deferred income 217 492
Short-term provisions and liabilities 42,049 44,837
Current provisions 3,339 6,677
Current liabilities due to banks 7,722 2,515
Trade payables 16,071 23,425
Current lease liabilities 1,678 2,778
Other current liabilities 9,153 6,118
Deferred income 4,086 3,324
Total shareholders’ equity and liabilities 114,411 127,754
22 CONSOLIDATED INCOME STATEMENT (IFRS)
3U Group (in ¤ thousand) 3-month report 9-month report1 July–30 September 1 January–30 September2006 2005 2006 2005
Sales 32,133 31,117 97,207 89,131
Cost of sales –29,217 –27,546 –88,008 –82,569
Gross profit 2,916 3,571 9,199 6,562
Selling expenses –1,417 –2,034 –4,278 –5,115
General and administrative expenses –2,947 –3,308 –9,049 –9,673
Other operating income 26,480 8,856 35,223 11,427
Other operating expenses –24,012 –1,465 –27,288 –3,513
Amortisation of customer base/goodwill –502 –345 –3,123 –1,034
Earnings before interest and taxes 518 5,275 684 –1,346
Interest income 705 460 1,080 –2,595
Interest expenses –1,380 0 –2,886 0
Income/expenses from financial assets (equity method) 5 0 13 0
Profit/loss on ordinary activities –152 5,735 –1,109 –3,941
Extraordinary profit/loss 0 9,111 0 9,111
Earnings before taxes –152 14,846 –1,109 5,170
Income tax expense 56 –449 –79 –1,004
Earnings before minority interests –96 14,397 –1,188 4,166
Minority interests 0 0 0 0
Consolidated net income/loss –96 14,397 –1,188 4,166
Earnings per share
Earnings per share, undiluted (in ¤) 0.00 0.31 –0.03 0.09
Earnings per share, diluted (in ¤) 0.00 0.30 –0.03 0.09
Average shares outstanding, undiluted (per item) 46,842,240 46,842,240 46,842,240 46,842,240
Average shares outstanding, diluted (per item) 49,914,490 49,914,490 49,914,490 49,914,490
23CASH FLOW STATEMENT (IFRS)
3U Group (in ¤ thousand) 1 January–30 September2006 2005
Net income/loss for the period –1,188 4,166
Depreciation/appreciation of fixed assets 13,266 11,078
Decrease of provisions and value adjustments –7,869 –779
Profit/loss from the disposal of fixed assets –2,623 0
Increase/decrease of trade receivables 778 –2,933
Increase/decrease of trade accounts payable –7,354 1,133
Changes to other receivables 2,752 2,732
Changes to other payables 8,197 –31,143
Changes to deferred items –41 –1,179
Other cash-neutral changes –203 734
Cash flow from operating activities 5,715 –16,191
Inflows from disposals of tangible assets 0 19,916
Outflows for investments in tangible assets –1,826 0
Cash receipts from the disposal of financial assets 25,854 0
Cash paid from additions to financial assets –23,554 0
Cash flow from investing activities 474 19,916
Outflows from the repayment of bonds and (finance) loans –2,610 0
Other –1,243 –1,606
Cash flow from financing activities –3,853 –1,606
Change in cash and cash equivalents 2,336 2,119
Changes to cash and cash equivalents from changes to the scope of consolidation –86 0
Cash and cash equivalents at beginning of period 15,278 16,499
Cash and cash equivalents at end of period 17,528 18,618
24 STATEMENT OF CHANGES IN EQUITY (IFRS)
3U Group Issued Capital Revalu- Profit/ Minority Currency Net Total (in ¤ thousand) capital reserves ation loss interests income share-
reserve/ carried holders’retained forward equityearnings
As of 1 Jan 2005 46,842 20,322 845 –24,210 9 –10 0 43,798
Consolidated profit 0 0 0 0 0 0 77 77
Stock options 0 579 0 0 0 0 0 579
Revaluation of securities 0 0 1,368 0 0 0 0 1,368
Currency changes taken directly to equity 0 0 0 0 0 –1 0 –1
As of 31 Dec 2005 46,842 20,901 2,213 –24,210 9 –11 77 45,821
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3U Group Issued Capital Revalu- Profit/ Minority Currency Net Total (in ¤ thousand) capital reserves ation loss interests income share-
reserve/ carried holders’retained forward equityearnings
As of 1 Jan 2006 46,842 20,901 2,213 –24,133 9 –11 0 45,821
Consolidated profit 0 0 0 0 0 0 –1,188 –1,188
Adjustments for previous years 0 0 0 202 0 0 0 202
Stock options 0 359 0 0 0 0 0 359
Revaluation of securities 0 0 –1,636 0 0 0 0 –1,636
Changes taken directly to equity 0 0 0 0 –9 1 0 –8
As of 30 Sep 2006 46,842 21,260 577 –23,931 0 –10 –1,188 43,550
26 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2006 IN ACCORDANCE WITH IFRS
• Order book See “Report on Business Development” page 11 et seq.
• Development of costs and prices See “Report on Business Development” page 11 et seq.
• Employee participation programme No changes as against financial year 2005
• Analysis of income See “Segment Report” page 12 et seq.
• Number of employees See “Employees” page 15
Supplementary disclosures in accordance with IAS 34
The accounting policies and methods of calculation used in the consolidated financial statements as of
31 December 2005 were applied unchanged for the interim statements as of 30 September 2006.
Consolidated group
With the exception of the disposal of 3U TELECOM S.R.L., Italy, there were no changes to the consolidated
group as against financial year 2005.
Significant events since the end of the interim reporting period
We refer to page 16 of this quarterly report.
Accounting principles
The interim financial report complies with the provisions of International Financial Reporting Standards
(IFRS).
27FINANCIAL CALENDAR
• Analyst conference
12 December 2006
• Publication of Annual Report 2006
30 March 2007
• Publication of Quarterly Report 1/2007
31 May 2007
• Shareholders’ Meeting 2007
June 2007
• Publication of Quarterly Report 2/2007
31 August 2007
• Analyst conference
Q4 2007
• Publication of Quarterly Report 3/2007
30 November 2007
CONTACT
3U TELECOM AG
Postfach 22 60
D-35010 Marburg
Company address:
Neue Kasseler Straße 62F
D-35039 Marburg
Tel.: +49 6421 999-0
Fax: +49 6421 999-1111
www.3u.net
Investor Relations
Kirsten Götsche
Tel.: +49 6421 999-1200
Fax: +49 6421 999-1998
28 IMPRINT
Published by
3U TELECOM AG
Neue Kasseler Straße 62F
D-35039 Marburg
Photographs
Stockbyte (title)
Photonica (page 2)
Zefa (page 19)
Text
Interstate by Tobias Frere-Jones
(Manufacturer: The Font Bureau)
© 2006 3U TELECOM AG, Marburg
Printed in Germany
This quarterly report contains statements relating to the future which
are subject to risks and uncertainties and which are assessments of
the management of 3U TELECOM AG and reflect its current opinions
with regard to future events. Such predictive statements can be
recognised by the use of terms such as “expect”, “assume”, “estimate”,
“anticipate”, “intend”, “can”, “plan”, “project”, “will” and similar
expressions. Statements relating to the future are based on current
and valid plans, estimates and expectations. Such statements are
subject to risks and uncertainties, most of which are difficult to
estimate and which are generally beyond the control of 3U TELECOM AG.
The following are — by no means exhaustive — examples of factors that
may trigger or affect a deviation: the development of demand for our
services, competitive factors — including price pressure –, technological
changes, regulatory measures, risks in the integration of newly
acquired companies. If any of these or other risks and uncertain
factors occur, or if the assumptions on which the statements are based
prove to be incorrect, the actual results of 3U TELECOM may differ
materially from those outlined or implied in these statements. The
company does not undertake to update predictive statements of this
nature.
This quarterly report contains a range of figures which are not part of
commercial regulations and the International Financial Reporting
Standards (IFRS), such as EBT, EBIT, EBITDA and EBITDA adjusted for
special influences, adjusted EBITDA margin, investments (capex). These
figures are not intended to substitute the information for 3U TELECOM AG
in accordance with the German Commercial Code (HGB) or IFRS. It
should be noted that the figures for 3U TELECOM AG which are not part
of commercial regulations and the IFRS, can only be compared to the
corresponding figures of other companies to a certain extent.
DISCLAIMER
3U GROUP
3U Germany
3U TELECOM AG
Neue Kasseler Straße 62F
D-35039 Marburg
Discount Telecom
Discount Telecom S&V GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
fon4U
fon4U Telecom GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
LambdaNet
LambdaNet Communications
Deutschland AG
Günther-Wagner-Allee 13
D-30177 Hannover
LineCall
LineCall Telecom GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
OneTel
OneTel Telecommunication GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
010017
010017 Telecom GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
010060
010060 Telecom GmbH
Neue Kasseler Straße 62F
D-35039 Marburg
3U Austria
3U TELECOM GmbH
Mariahilfer Straße 123/3
A-1060 Wien
3U Belgium
3U TELECOM S. P. R. L.
Rond Point Schuman 6, box 5
B-1040 Bruxelles
3U France
3U TELECOM SARL
12, Avenue de l’Arche
F-92419 Courbevoie cedex
3U Luxemburg
3U TELECOM S. A. R. L.
26, Boulevard Royal
L-2449 Luxembourg
3U Switzerland
3U TELECOM AG
Dreikönigstrasse 31a
CH-8002 Zürich
3U UK
3U TELECOM Ltd.
Crown House,
72 Hammersmith Road
London W14 8TH
3U USA
3U TELECOM INC.
2654 W. Horizon Ridge Parkway,
Suite B5–143
Henderson, NV 89052
International subsidiaries
3U TELECOM AG • Neue Kasseler Straße 62 F • D-35039 Marburg • Tel. + 49 6421 999-0 • Fax + 49 6421 999-1111 • [email protected] • www.3u.net 3006
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